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Banks' Cuts Fall Short as Growth Stays Tepid

Rising Pay, Regulatory Costs Offset Recent Efforts

By

Andrew R. Johnson

July 7, 2014 7:25 p.m. ET

The biggest Wall Street banks have slashed tens of thousands of jobs and pruned all manner of expenses since the financial crisis. But expanding pay packages and the rising cost of complying with government regulations have neutralized those efforts.

With revenue pinched by a slowdown in trading and tepid loan demand, profits are coming under pressure this year.